IDEAS home Printed from https://ideas.repec.org/a/asi/adprev/v7y2019i4p219-238id240.html
   My bibliography  Save this article

Sensitivity of Macroeconomic Policy Goals to Trilemma and Quadrelimma Choices

Author

Listed:
  • Ramandeep Kaur

Abstract

This study aims to check the effect of trilemma and quadrilemma choices on price and output stability of the Indian economy over the period of 1980-2016. All the three combos of trilemma triangle have been put into an empirical framework in order to check their effect upon the inflation rate, growth rate, inflation volatility, and output volatility. The role played by the international reserve hoarding has also been taken into account as the many studies have proved that trilemma framework is converting into the quadrilemma due to an increasing amount of reserves as well as due to the decisive role played by these reserves in the effectiveness of trinity choices upon the macroeconomic stability. The Autoregressive Distributed Lag Model (ARDL) has used and concluded that trinity choices could successfully affect the macroeconomic stability of the Indian economy. Another important conclusion is that the quadrilemma framework choices are better than the trilemma as the presence of interaction variable of the trinity indices and international reserves have altered the policy effects in an efficient manner and made these policy choices more stabilizing.

Suggested Citation

  • Ramandeep Kaur, 2019. "Sensitivity of Macroeconomic Policy Goals to Trilemma and Quadrelimma Choices," Asian Development Policy Review, Asian Economic and Social Society, vol. 7(4), pages 219-238.
    • Handle: RePEc:asi:adprev:v:7:y:2019:i:4:p:219-238:id:240
    as

    Download full text from publisher

    File URL: https://archive.aessweb.com/index.php/5008/article/view/240/456
    Download Restriction: no
    File URL: https://archive.aessweb.com/index.php/5008/article/view/240/1870
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Feng, Ling & Le, Duong Thuy & Yuan, Fan, 2023. "Inclusion of the RMB in SDRs and the impossible trinity in China," Economic Systems, Elsevier, vol. 47(2).
    2. Nitin Arora & Deepika Malik & Rahul Arora, 2022. "Which Combination of Impossible Trinity Choices Ensures Output and Price Stabilities in India? A Sign‐Restricted Vector Autoregressive Analysis," Economic Papers, The Economic Society of Australia, vol. 41(3), pages 260-275, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:asi:adprev:v:7:y:2019:i:4:p:219-238:id:240. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Robert Allen (email available below). General contact details of provider: https://archive.aessweb.com/index.php/5008/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.